all Verizon 11:44 PM 62%-, 7. -12 points MintsoStat9 to E.042 My Notes Ask Your

Question

all Verizon 11:44 PM 62%-, 7. -12 points MintsoStat9 to E.042 My Notes Ask Your Returns on common stocks in the United States and overseas appear to be growing more closely correlated as economies become more interdependent. Suppose that the following population regression line connects the total annual returns (in percent) on two indexes of stock prices: MEAN OVERSEAS RETURN =-0.09 + 0.30 x US. RETURN (a) what is in this line? 0 is the population slope,-0.09. 0 is the population slope, 0.30. Bn is the population intercept, 0.30. 0 is the population intercept,-0.09. what does this number say about overseas returns when the U.S. market is fiat (0% return)? This says that the mean overseas return is %when the us. return . (b) What is in this line? 1 is the population slope, 0.30. 1 is the population intercept,-0.09. A, is the population intercept, 0.30. O is the population slope,-0.09. What does this number say about the relationship between U.S. and overseas returns? This says that when the US. return changes by 1%, the mean overseas return changes by %. (c) We know that overseas returns will vary in years when U.S. returns do not vary. Write the regression model based on the population regression line given above. x +Ei Where y and x, are observed overseas and U.S. returns in a given year, and e are independent O, o) variables What part of this model allows overseas returns to vary when U.S. returns remain the same? 2 points mintrostat? 10.e.031 defective My Notes Ask Your How are returns on common stocks in overseas markets related to returns in one countries markets? Consider measuring the countries returns by the annual rate of return on the index A and overseas returns by the annual rate of retun on index B. Both are recorded in percents. We will regress the B returns on the A returns for the years 1991 to 2014. Here is part of the output for this regression. The regression equation is B--3.21+0.823A. Complete the analysis of variance table by filing in the missing boxes. (Round your answer for F to two decimal places and your answers for SS and MS to one decimal place)

Explanation / Answer

Question 7

(a) here, 0  is the population intercept, having value -0.09

That mean overseas returen is -0.09% when US teturn is 0%.

(b) 1 is the Population slope which is 0.30

That mean if US return changes by 1%, mean overeseas return by 0.30%

(c) yi = -0.09 + 0.30 xi  + e

the error (e) part option b where model allows overseas return to vary.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.